An online discount store renowned for slashing the costs of designer clothes has collapsed into administration
A popular online shop that offers discounted fashion and homeware goods from big brands has collapsed into administration after almost two decades.
BrandAlley, a members-only shopping website, is famed for slashing up to 80 percent off designer items, from clothes to beauty products and furniture to homeware. It was founded in 2008 with a major following for its major price drops on valuable goods in its flash sales.
Now, it has announced it has fallen into administration with 75 members of staff set to lose their jobs, reports The Sun. The company has said customers are able to continue to shop on the site as normal, with all existing orders as well as returns and refunds to be undertaken by the new company. It is estimated shoppers spend on average more than £100 per order as the site runs dozens of flash sales every day across more than 1,000 brand partners.
Kiri Holland and Danny Dartnall, from accountancy firm BDO have been appointed joint administrators of BrandAlley UK Limited as of Friday (May 29).
The business reportedly ran into financial difficulty and has been sold through a pre-pack administration deal to a new company trading as BrandAlley International Limited.
Of its 163 employees, 83 have been kept on to facilitate the sale and 60 will remain temporarily to assist with the handover. Meanwhile, 15 were made redundant.
The company had reportedly weighed up alternative options, including a full or partial sale, after hiring advisory and restructuring firm Interpath to consult on its future. It also initially looked at raising debts before exploring the option of finding a buyer.
